Illinois General Assembly - Full Text of HB3636
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Full Text of HB3636  97th General Assembly




HB3636 EnrolledLRB097 05212 AJO 45261 b

1    AN ACT concerning civil law.
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4    Section 5. The Mechanics Lien Act is amended by changing
5Sections 16 and 34 as follows:
6    (770 ILCS 60/16)  (from Ch. 82, par. 16)
7    Sec. 16. No incumbrance upon land, created before or after
8the making of the contract for improvements under the
9provisions of this act, shall operate upon the building
10erected, or materials furnished until a lien in favor of the
11persons having done work or furnished material (hereinafter
12"lien creditor") shall have been satisfied, and upon any
13questions arising between incumbrancers and lien creditors,
14all previous incumbrances shall be preferred only to the extent
15of the value of the land at the time of making of the contract
16for improvements, but shall not be preferred to the value of
17any subsequent improvements, and each the lien creditor shall
18be preferred to the value of all the subsequent improvements
19erected on said premises, whether or not provided by the lien
20creditor, and the court shall ascertain by jury or otherwise,
21as the case may require, what proportion of the proceeds of any
22sale shall be paid to the several parties in interest. All
23incumbrances, whether by mortgage, judgment or otherwise,



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1charged and shown to be fraudulent, in respect to creditors,
2may be set aside by the court, and the premises freed and
3discharged from such fraudulent incumbrance. When the proceeds
4of a sale are insufficient to satisfy the claims of both
5previous incumbrancers and lien creditors, the proceeds of the
6sale shall be distributed as follows: (i) any previous
7incumbrancers shall have a paramount lien in the portion of the
8proceeds attributable to the value of the land at the time of
9making of the contract for improvements; and (ii) any lien
10creditors shall have a paramount lien in the portion of the
11proceeds attributable to the value of all subsequent
12improvements made to the property.
13(Source: Laws 1903, p. 230.)
14    (770 ILCS 60/34)  (from Ch. 82, par. 34)
15    Sec. 34. Notice to commence suit.
16    (a) Upon written demand of the owner, lienor, or any person
17interested in the real estate, or their agent or attorney,
18served on the person claiming the lien, or his agent or
19attorney, requiring suit to be commenced to enforce the lien or
20answer to be filed in a pending suit, suit shall be commenced
21or answer filed within 30 days thereafter, or the lien shall be
22forfeited. Such service may be by registered or certified mail,
23return receipt requested, or by personal service.
24    (b) A written demand under this Section must contain the
25following language in at least 10 point bold face type:



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1"Failure to respond to this notice within 30 days after
2receipt, as required by Section 34 of the Mechanics Lien Act,
3shall result in the forfeiture of the referenced lien."
4(Source: P.A. 82-618.)
5    Section 99. Effective date. This Act takes effect upon
6becoming law.